Will TRX follow BTC? Justin Sun discusses block reward cut

The founder of Tron, Justin Sun, shared his reflections on the potential reduction in TRX block rewards, linking parallels to the mechanism of half of Bitcoin.

In a recent tweet, Sun shared his reflections on the implementation of a reward reduction for Tron (Trx). He noted that cryptocurrency is already a deflationary, the offer decreasing by 1% per year.

This makes TRX “the only deflationary asset among the great cryptocurrencies”, according to Sun.

“This discussion on the next TRX reduction as a reward of blocks is worth paying attention! Will he follow the path of Bitcoin and will enter a cycle in half?” Sun wrote On X., he also compared the potential change as an evolution similar to the development of Bitcoin.

Sun explained this as that of Bitcoin (BTC) The network has matured and its price has increased, the rewards of blocks have been gradually reduced by the reduction mechanism in half. He suggested that Tron could follow a comparable path, noting that the increase in the TRX price has increased the awards for nodes producing blocks across the network.

The TRX Block award reduction proposal mentions several scenarios

THE proposalOfficially submitted to GitHub as “reducing the rewards of TRX blocks # 738”, describes several potential scenarios. The reduction of 1 million TRX in the daily rewards of the blocks would increase the deflation rate by 50% to 1.5% per year. At the same time, a reduction of 2 million TRX would double the deflation rate to 2% per year, creating an impact “comparable to the reduction of half of Bitcoin”.

The Github proposal also mentions the multiple advantages of the implementation of these changes. This includes better deflation, an increase in shuttle incentives, reinforced security on networks and an improvement in economic alignment. “From timely time adjustments to TRX block rewards can better promote the healthy and sustainable development of the Tron network and the Tron ecosystem,” said the proposal.

Unlike the automated Bitcoin Bitcoin mechanism which reduces the awards of about 50% every four years, the proposed reduction of TRX would be implemented by community governance. “In the end, this decision belongs to the TRX community!” Underlined the sun.

Sun pointed out that even with reduced block rewards, “current incentives for network validators remain very attractive”.